Vietnam's Agro-Forestry-Fisheries exports saw strong growth in Jan-May 2024

The Ministry of Agriculture and Rural Development recently released a report stating that exports of agriculture, forestry, and fisheries reached 5.06 billion USD in May 2024, an increase of 11.2% from May 2023. Major agricultural products increased by 14.3% to $2.73 billion, forestry products by 17.9% to $1.35 billion, and animal products by 10.2% to $45.6 million among them. Conversely, exports of industrial inputs totaled 153 million USD (down 6.9%), and seafood exports totaled 780 million USD (down 3.5%).

The US, China, and Japan remain the three largest import markets

Overall, most commodity groups saw growth in the first five months of 2024; as a result, the overall export value of goods related to agriculture, forestry, and fisheries reached 24.14 billion USD, up 4.2 billion USD from the same time the previous year. The following factors increased the outcome: fishery products at 3.5 billion USD, up 3.6%; livestock products at 199 million USD, up 5.6%; forestry products at 6.58 billion USD, up 22.7%; and agricultural products at 13.11 billion USD, up 27.7%. With its export value down 1.3% from the same period in 2023 to just 756 million USD in the first five months of this year, the production input group was the only one to experience this decline.

With a notable growth in exports and a strong reduction in imports (import value of 17.61 billion USD), the agricultural, forestry, and fishery sector saw a trade surplus of 6.53 billion USD in the first five months of this year, up 64.5% over the same period the previous year. The export value of items from agriculture, forestry, and fishing to all markets increased in terms of export markets. Exports to Asia totaled 11.31 billion USD, up 17.5%; to the Americas, they reached 5.4 billion USD, up 23.1%; to Europe, they reached 3.2 billion USD, up 39.4%; to Africa, they reached 459 million USD, up 26.1%; and to Oceania, they reached 341 million USD, up 24.8%.

The US, China, and Japan continue to be the three largest export markets. The export value of agricultural, forestry, and fishery products to the United States accounted for 20.6%, up 23.9%; China accounted for 19.2%, up 8.6%; and Japan accounted for 6.7%, up 6.6% compared to the same period last year.

In terms of export value, most key agricultural, forestry, and fishery products were higher than the same period last year: Wood and wood products increased by 23.6%; Coffee increased by 44.1%; Rice increased by 38.2%; Cashew nuts increased by 19.3%; Fruits and vegetables increased by 28.1%.

Coffee exports are achieving the most impressive growth, with 2.9 billion USD in the first five months of 2024, an increase of 44.1% compared to the same period last year.

Rice exports followed, with 4.15 million tons of rice exported in the first five months, bringing in 2.65 billion USD, an increase of 14.7% in volume and 38.2% in value compared to the same period last year.

In the domestic rice market, rice prices in the Mekong Delta increased slightly compared to the previous month. In Tien Giang, the average price of 25% broken milled rice was 10,500 VND/kg; 5% broken rice was priced at 11,200 VND/kg, an increase of 200 VND/kg compared to the previous month.

The Ministry of Agriculture and Rural Development also reported that recently, some Vietnamese enterprises have signed rice export contracts at prices lower than the current market prices, raising concerns about the potential negative impact on our rice exports and the future prices for farmers.

For the export of fruits, vegetables, wood, and cashew nuts, the Ministry of Agriculture and Rural Development reported impressive growth. In the first five months of 2024, the country exported 288 thousand tons of processed cashew nuts, earning 1.55 billion USD, an increase of 30.6% in volume and 19.3% in value compared to the same period last year.

Meanwhile, wood and wood product exports brought in 6.14 billion USD, up 28.1% compared to the first five months of 2023. At this time, many companies have orders until August, and some even until the end of 2024.

Thanks to strong export growth, Vietnamese wood products continue to hold a significant market share in many of the world's top furniture-consuming markets. In the US market, wooden furniture imported from Vietnam accounted for 40.8% of the total import value of wooden furniture in this country.

The export value of fruits and vegetables in the first five months of 2024 reached 2.59 billion USD, up 28.1% compared to the same period last year. However, due to the current harvest season of many fruits, the domestic market prices of many fruits are decreasing: Ri6 durian is priced at 70,071 VND/kg, down 37,500 VND/kg, and red flesh dragon fruit is priced at 23,929 VND/kg, down 4,643 VND/kg compared to the previous month.

Seafood exports rebounds

Even while the fishing industry has not experienced the same robust expansion as that of forestry and agriculture, fisheries exports are beginning to show signs of improvement. According to estimates, the value of pangasius fish exported in the first five months of this year was $725 million USD, a 2% rise over the same time in 2023. In the first five months of this year, the United States remained the biggest import market for Vietnamese pangasius, followed by China, Europe, and a few places in South America.

Frozen pangasius fillets continue to be the primary export good for the US market. 98% of the entire value of pangasius exports to the United States as of the end of May 2024 came from the export of frozen fillets, which totaled over 120 million USD. This is a 19% increase in comparison to the same period in 2023.

Imports of processed pangasius from Vietnam are currently rising in the US, with a value increase of 8.5 times when compared to the same period in 2023. As a result of decreased consumer demand, frozen pangasius exports to the US have decreased. Even if the European market has picked up steam since April 2024, the value of pangasius exports to Europe in the first five months of 2024 is only expected to have reached 70 million USD, a 7% decrease from the same time in 2023.